Construction in Austria - Key Trends and Opportunities to 2022

Synopsis

Following a period of negative growth since 2008, the Austrian construction industry finally posted a slight recovery in 2016, with growth continuing in 2017, on the back of improving economic conditions coupled with a gradual resurgence in business confidence, which accelerated the pace of construction activity in the country. According to Statistics Austria, the country's average construction turnover index at 2010 base prices rose by 7.4% in 2017. This was preceded by an annual contraction of 0.4% in 2015 and an annual growth of 3.3% in 2016.

The industry is expected to continue to register positive growth over the forecast period (2018-2022), supported by public and private sector investments in transport, residential and energy infrastructure projects. The industry's output value in real terms is expected to record a compound annual growth rate (CAGR) of 2.38% over the forecast period - up from -0.06% during the review period (2013-2017).

The industry's expansion is expected to be supported by government flagship programs such as the Rail Infrastructure Investment Plan, National Energy Action Plan of Austria and Austrian Broadband Strategy 2020. In 2016, the government launched the Austrian Stability Program 2016-2021, under which it announced plans to invest EUR173.0 million (US$191.3 million) to develop overall infrastructure in various municipalities and EUR750.0 million (US$829.3 million) to develop education infrastructure. Efforts by the government to boost the economy, coupled with improvements in private consumption and manufacturing activity, are expected to offer a positive outlook for the industry over the forecast period.

Summary

Timetric's Construction in Austria - Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the Austrian construction industry, including:

• The industry's growth prospects by market, project type and construction activity

• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the industry

• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Austria. It provides:

• Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Austria, featuring details of key growth drivers.

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

• Listings of major projects, in addition to details of leading contractors and consultants

Reasons To Buy

• Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.

• Assess market growth potential at a micro-level with over 600 time-series data forecasts.

• Understand the latest industry and market trends.

• Formulate and validate strategies using Timetric's critical and actionable insight.

• Assess business risks, including cost, regulatory and competitive pressures.

• Evaluate competitive risk and success factors.

Key Highlights

• Timetric expects the residential construction market to retain its leading position over the forecast period, with a share of 42.0% of the industry's total value in 2022. Over the forecast period, market growth is expected to be supported by improvements in consumer confidence, disposable incomes and the purchasing power of consumers, coupled with low mortgage interest rates being offered by Austrian banks.

• Timetric expects infrastructure construction to grow at a forecast-period CAGR of 7.80% in nominal terms, driven by the government's effort to develop the country's transport infrastructure. Under the rail infrastructure investment plan, which was launched in October 2016, the government announced plans to invest EUR15.2 billion (US$17.1 billion) between 2017 and 2022 to upgrade the country's rail network.

• In line with its target to generate all of its energy from renewable sources by 2030, the government is focusing on attracting private sector investments into renewable energy projects over the forecast period. In July 2017, the Austrian National Council approved the amendment of the Green Electricity Act, under which it plans to offer incentives to renewable energy developers.

• Under the National Reform Program launched in 2017, the government announced plans to equip all schools in the country with high-speed broadband networks by 2021. This is expected to support the expansion of the telecommunications infrastructure category over the forecast period.

• The total construction project pipeline in Austria, as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million, stands at EUR57.7 billion (US$65.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed to late-stage projects, with 61.6% of the pipeline value being in projects in the pre-execution and execution stages as of May 2018.